2 Introduction What is a power-oriented industry? An industry which needs to locate near the power resources because of the large demand for abundant energy supply with cheap transport cost of energy can be regarded as a power-oriented industry.
3 Features of power-oriented industries High energy consumption in production processesRequiring reliable and consistent energy supply for smoothening the manufacturing processes
4 Case Study - Aluminium Industries in Australia Alcoa, the largest aluminium producer in the world, operates 2 aluminium smelters in Australia.
5 Smelting is the process of extracting aluminum metal from aluminum oxide (alumina) through electrolytic reduction. The fundamental component of a smelting operation is the electrolytic cell, or "pot" in which this reaction takes place. During smelting, large amounts of current pass through molten alumina dissolved in a °C cryolite bath. This process separates out aluminum metal for removal and casting. Smelters typically operate hundreds of pots, linked electrically in configurations called potlines.Aluminium smelter of Alcoa in Australia
7 Why is it considered as power-oriented industry?
8 Evidence 1. Using power resources intensively It requires on average 15.7kWh of electricity toproduce 1 kg of aluminium to produce 1 kg ofaluminium.In comparison, for iron and steel industry, about7 kWh of electricity is needed to produce sameamount of output.A large amount ofenergy is needed
9 2. Energy cost : Larger % of production cost Compare to other industries, the aluminium industry spends a much larger portion of its production cost on energy.Energy cost as alarge portion ofproduction costSource: Department of Commerce, 1999
10 3. Non-stop operationSmelting process has to be continuous, otherwise:Cooling down of aluminaMore energy for reheatingHigher total energy costthe nearer to the power resources,the more stable power supply.The need ofa reliable powerresources
11 Conclusion Power-oriented A large demand for power resources Need for reliable and stable energy supplyPower-oriented
12 ∴ near HEP plants Smelting is an electricity-intensive process Cost of electricity is a key component of the cost of aluminum Alcoa’s smelting facilities are usually closely allied with power generation systems.In the cases, Alcoa operates its own hydroelectric or coal-fired power plants that provide power both for smelting and for municipal use.
13 What affects the influence of energy on location?
14 Technology advancement ＊cables and pylons are used to transmit electricityit is mobile ∴ energy can be generated everywhere∴ free from power sources
15 ↑Energy Efficiency Methods ceramic fiber AIM (Advanced Industrial Materials)Combustion∴ Old production system replaced by new equipmentsmore convenient and more productiveamount of energy used in manufacturingprocesses decreases steadily
16 ↑Energy EfficiencyE.g. in aluminium industry, in 1950’s, it took about 21 kWh of electricity to make 1 kg of aluminium from aluminium oxide; today, only 14 kWh of electricity is needed.2520Aluminium needed (kWh)151051950‘spresent
17 More substitutes Development of different dominant types of energy 18th century-Charcoal, Motive power19th to 20th century-Coal, OilMid-20th century-Petroleum, Natural gas, HEP,Nuclear power, Biofuels, Windpower, Solar energyDecrease in locational effect
18 Conclusion The technology advancements reduce the pull of energy. Energy becomes a less important locational factor influencing on the industrial location.According to the recent trend, we can predict that with the use of more and more new forms of energy resources which are easier to be transported or ubiquitous in nature, the role of power supply in the location of industries become less and less important.